UBS has repeated its Buy recommendation for Dutch Bros Inc. (NYSE: BROS) and preserved an $85.00 price target, identifying the drive-through coffee chain as its leading stock pick into the company’s upcoming fourth-quarter earnings announcement. The equity is quoted at $56.05, a substantial gap beneath UBS’s valuation.
Analyst consensus currently tilts strongly toward buying, with a consensus rating of 1.38 on the scale where 1 denotes Strong Buy. InvestingPro metrics included in UBS’s review point to a mixed technical and fundamental picture: the stock’s relative strength index suggests it is in oversold territory, while InvestingPro’s Fair Value assessment indicates the shares may appear overvalued on some measures.
UBS’s case for maintaining its positive stance rests on expectations that Dutch Bros will continue to capture share through 2026. The firm expects the company’s ongoing sales and traffic momentum - supported in part by a planned food launch - to underpin that growth trajectory. UBS analyst Dennis Geiger highlighted market expectations ahead of the February 12 earnings release, noting investors were anticipating roughly 6% same-store sales growth for the fourth quarter. With the earnings report arriving in six days, the near-term focus for investors is on whether the company’s results will match or exceed those same-store sales expectations.
Recent top-line strength supports UBS’s view: Dutch Bros reported 28.93% revenue growth over the trailing twelve months, a metric the firm cites when forecasting continued sales expansion. For 2026, UBS expects company guidance to outline same-store sales growth of about 3-5% and an adjusted EBITDA range between $350 million and $370 million. That projected EBITDA range sits close to consensus estimates, which UBS references as $365.9 million.
Despite these projections, Dutch Bros has experienced notable share-price pressure early in 2026. UBS attributes this weakness to several market dynamics: investor positioning concerns, elevated expectations for upcoming guidance, and intensified competition across the coffee and quick-service beverage landscape. The stock’s recent performance quantifies that pressure - a 14.37% decline year-to-date and a 22.63% drop over the past twelve months.
UBS argues, however, that competitive worries are overstated. The firm writes that Dutch Bros’ "unique brand positioning & customer affinity should drive sustained momentum" even as the company faces industry headwinds. UBS expects Dutch Bros to outperform competitors, including the possibility of a resurgent Starbucks and McDonald’s impending new beverage platform.
On valuation, UBS points to a roughly 27.5 times 2026 consensus EV/EBITDA multiple as "particularly attractive" when compared with the company’s three-year average above 33 times. UBS sees upside coming from continued traffic gains, robust new-store productivity that could support mid-teens percentage store expansion, and potential for EBITDA growth exceeding 20%.
InvestingPro’s current data provides a different snapshot of market multiples: a P/E ratio of 109.25 and an EV/EBITDA of 31.11. UBS references those elevated multiples as part of its assessment of how the market is pricing Dutch Bros today.
Other firms have recently weighed in on Dutch Bros with bullish ratings and targets. KeyBanc Capital Markets reaffirmed an Overweight rating and set a $77 price objective, citing strong growth drivers, while TD Cowen raised its target to $73 and pointed to the food-platform expansion as a potential catalyst for sustained same-store sales gains. UBS’s reiterated Buy call and $85 target similarly emphasize store growth and sales momentum, particularly in metropolitan markets.
Corporate developments have also featured in analysts’ assessments. Dutch Bros announced the appointment of Jennifer Somers as Chief Shops Officer; Somers brings over 20 years of operational leadership experience and will be responsible for the company’s field organization and shop operations. Separately, Dutch Bros was added to the S&P Dow Jones Indices, a change that market participants often view as an endorsement of a company’s market standing.
Taken together, the rating reiterations, updated price targets and internal leadership additions underscore the company’s strategic focus on growth and execution ahead of the imminent quarterly report. Investors seeking further detail can consult the comprehensive Pro Research Report for BROS available through InvestingPro, which covers the company alongside more than 1,400 U.S. equities.
Summary - UBS has maintained a Buy rating and an $85 price target for Dutch Bros (BROS), citing continued market-share gains through 2026 supported by sales and traffic momentum and a new food initiative. The stock trades at $56.05, below the UBS target, and faces recent downward pressure, though UBS points to attractive 2026 EV/EBITDA versus historical averages and potential upside from store productivity and EBITDA growth.